It has been another tough year for Zambia’s economy, with sluggish global growth, low copper prices and ongoing power shortages continuing to weigh on economic prospects.

In addition, a weak Kwacha has compounded Government’s burgeoning debt obligations which, combined with increased Government spending, has prompted the fiscal deficit to balloon to an estimated 10% of GDP in 2016. This compares to Government’s target of 3.8% announced in the last budget.

The new Minister of Finance, the Honorable Felix Mutati, faces a difficult balancing act ahead if he is to navigate the tightrope between fiscal prudence and the expenditure needed to transform Zambia into a middle income country by 2030.